Coffee Service
JM Smucker boosts Q4 2022 sales, earnings despite Jif recall hit
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June 13, 2022
The J.M. Smucker Co., which owns Folgers, Dunkin' and other consumer brands, reported positive results for Q4 2022 despite a hit from the Jif peanut butter recall, while full year 2022 results were negative, according to an earnings report. Highlights include:
- Net sales increased 6% from $1.92 billion in Q4 2021 to $2.03 billion for the three months ending April 30, 2022, including a 1% unfavorable impact of estimated customer returns related to the Jif peanut butter product recall.
- Net sales for the full year ending in April fell from $8 billion to $7.99 billion.
- Net income rose 37% from $147 million to $202.1 million for the comparative quarters, while net income per common share rose from $1.35 to $1.87 and adjusted earnings per share rose from $1.89 to $2.23.
- Net income for the full year ending in April fell from $876.3 million to $631.7 million.
- Net income per common share for the full year ending in April fell from $7.79 to $5.84 while net income per common share assuming dilution fell from $7.79 to $5.83.
- The increase in comparable net sales for Q4 2022 was primarily driven by a 10% increase from net price realization, driven by each of the company's business segments, reflecting list price increases. The favorable net price realization was partially offset by a 1% decrease from volume/mix.
- U.S. retail coffee net sales for Q4 2022 increased 11% from $583.1 million to $647.2 million. Higher net price realization increased net sales by 17%, primarily reflecting list price increases across the portfolio. A reduced contribution from volume/mix decreased net sales by 6%, primarily driven by the Folgers and Dunkin' brands.
- U.S. retail consumer foods net sales for Q4 2022 increased 11% from $419.8 million to $397.3 million. Higher net price realization increased net sales by 17%, primarily reflecting list price increases across the portfolio.
- For fiscal 2023, the company offered full-year guidance of a 3.5% to 4.5% sales increase and adjusted EPS of $7.85 to $8.25.
Shares traded at $1.28 Friday against a 52-week range of $118.55-$146.74.
"Our fourth quarter and full-year results demonstrate the continued execution of our strategy and momentum of the business, amid a challenging and dynamic environment," Mark Smucker, president and CEO, said in the press release.
